Shilen Patel hails West Brom's 'remarkable feat' but adds FFP warning
Albion owner Shilen Patel hailed the club's "remarkable feat" of navigating financial fair play issues during the first 18 months of Bilkul's stewardship.
In an open letter to supporters, Albion's owner and chairman addressed supporters on a variety of topics including the steep financial challenges when the £60million takeover from Guochuan Lai was completed in February 2024.
Patel referenced the "major challenge" facing Albion this time last year, at the beginning of the 2024 summer window, when it comes to the club negotiating through the strict profit and sustainability (P&S) regulations when it comes to spending in the Championship.
The club's latest set of accounts, published in February but accounting for the period to June 2024, tallied a £34m loss, following on from a loss of £11m in the previous set of accounts.
Championship clubs are not permitted to lose more than £39m across a rolling three-year period and Patel explained how the club's 'player trading, revenue growth, cost management, and a deep review of P&S regulations' helped avoid sanctions and penalties.
Patel wrote: "We began last summer with the highest payroll of any non-parachute club, we had to find a way to avoid smashing through the P&S ceiling due to an inherited overrun projected at eight figures.
"At the same time, we were committed to investing in the future and building on the strengths of the squad, knowing we would have to sell and replace valued players to do so.
"Through a combination of player trading, revenue growth, cost management, and a deep review of P&S regulations, we successfully executed a plan to steer clear of penalties and point deductions."
Patel talked up the achievement of negotiating away from such sanctions while also improving Albion's squad on several levels.
"This is a remarkable feat, as today’s talent funnel represents substantially more breadth, quality, versatility, depth, and value than when we were first confronted with the P&S challenges," he added.
"We can take great encouragement from the exceptional talents who have been identified and recruited in the last two windows while right-sizing our wage bill for a non-parachute Championship reality, and we are continually enhancing our approach."
Albion's American owner added that the club are not yet out of the woods when it comes to profit and sustainability challenges.
He said the club must once again be 'pragmatic, adaptable, resourceful and consider things other than merely transfer desires' when it comes to this summer's transfer business.
Patel added Albion's backing for the Championship to adopt a squad cost ratio financial model, similar to that of the Premier League and Uefa competition, when it comes to the value of squad wages.
